The Four Core Characteristics of Outsourcing Shared Services
Outsourcing emerged from the organizational need to hire or train specialized talent in areas that did not correlate to the primary value proposition of a company. It offered a key edge to organization in terms of cutting down costs and streamlining business functionality all in one fell swoop. As the concept has evolved the advantages if offers have moved up the value chain.
Specialized talent pool
A major advantage that outsourcing offers is access to specialized talent pool. Opting for remote services for business functionalities like Finance & accounting, HR, Biz Support, IT application development, Remote IT infrastructure management and Legal services helps you access their expertise without having to invest in building one in-house. Having worked with multiple organizations, the talent pool already has considerable knowledge in the field at their disposal, and thus best practices and innovation come with territory. Another aspect to take into account is that with back-offices, hiring is restricted by the location of the office. A physical office means you can only hire the best talent within a short radius. When it comes to shared services, the effort needs to be duplicated at least in part at multiple locations. By outsourcing these functionalities organizations can acquire talent with domain expertise without having to pay a premium.
Data security and integrity
Another major concern that has surfaced especially in the last decade is that of data security and integrity. Data being the oil of this generation, every industry strives to collect and use data more efficiently. Handling data related to the company or clients and protecting IP is paramount. Teams that provide data security outsourcing would have an ingrained culture of data security. By outsourcing data security and integrity to them, organizations can ensure that the data is taken care of by domain experts that have significant and updated knowledge of threats to data security and can protect the organization’s data efficiently from them. Thus, instead of developing processes and policies in order to ensure data security, the task can be outsourced to a remote team that specializes in it.
Focus on core competency
Core functions of a company suffer when the company faces with an increased burden on non-core activities. Outsourcing helps eliminate this added workload and allows business to focus their energy on key tasks related to business growth while experts handle their non-core activities. This allows organizations to use their in-house personnel more efficiently and build expertise in line with their primary business functionality.
Scalability and Flexibility
Outsourcing also offers the immense benefit scalability and flexibility. Using remote services for handling business process translates into quicker turnarounds when there is a need to scale up or scale down a business need. Since the talent pool specializes in the business process they can be quickly brought up to speed and deployed without having to provide specialized training, conserving the crucial commodity of time. Since these remote teams can exist across time zones, outsourcing to a team that has a presence in multiple time zones would bring in the added advantage of working close to 24*7. This would increase productivity of the entire organization and optimize its resources.
Outsourcing business processes to the right partner would thus entail a whole host of advantages. It would give any business the requisite competitive edge by having its business needs managed by industry experts without having to invest in it themselves. Hence using outsourcing to optimize business functionality is the obvious choice for any growing business.